Confusion can arise when cost allocations to one consuming department depend on the activity of another consuming

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Confusion can arise when cost allocations to one consuming department depend on the activity of another consuming department. “A commonly misused basis for allocation of central support costs is actual dollar sales.” Explain.

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Introduction to Management Accounting

ISBN: 978-0133058789

16th edition

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

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Question Posted: Nov 19, 2014 06:52 AM

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A commonly misused basis for allocation is dollar sales. Explain.
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Confusion can arise when cost allocations to one consuming department depend on the activity of another consuming

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Sales dollars are often a poor basis for allocation of c...View the full answer

Introduction to Management Accounting

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